Indonesian President Prabowo Subianto’s state visit to Seoul on April 1, 2026 produced ten memoranda of understanding with an aggregate declared value of US$10.2 billion, covering energy transition, battery manufacturing, steel, digital infrastructure, and property development. The agreements advance a bilateral relationship formally elevated to a Special Comprehensive Strategic Partnership, and position Danantara, Indonesia’s sovereign wealth fund, as a direct co-investment vehicle for Korean industrial capital entering the country.
Key Facts At A Glance
- Ten MoUs signed at the Indonesia-Korea Partnership for Resilient Growth forum in Seoul on April 1, 2026
- Combined MoU value: US$10.2 billion (Rp173 trillion), as stated by Coordinating Minister for Economic Affairs Airlangga Hartarto
- Bilateral relationship upgraded to a Special Comprehensive Strategic Partnership between Presidents Prabowo Subianto and Lee Jae Myung
- Danantara CEO Rosan Roeslani cited approximately US$6 billion in combined Lotte Chemical and POSCO investment discussions, on the record
- South Korea visit follows a Japan leg that produced US$23.6 billion in investment commitments; combined North Asian total: approximately Rp574 trillion
- South Korea is the seventh-largest investor and trading partner of Indonesia
- Hyundai LG Indonesia Green Power’s 10GWh EV battery factory in Karawang has been operational since July 2024, representing the first phase of a US$1.1 billion investment
Indonesia’s diplomatic investment drive continued in Seoul, where President Prabowo Subianto presided over the signing of ten memoranda of understanding at the Indonesia-Korea Partnership for Resilient Growth forum on April 1, 2026. The agreements were valued at US$10.2 billion, according to a public statement by Coordinating Minister Airlangga Hartarto, who attended the forum on behalf of the president alongside Investment Minister and Danantara Chief Executive Rosan Roeslani.
The range of sectors covered reflects Indonesia’s continued effort to deepen industrial relationships that extend beyond commodity export into value-added manufacturing. The MoUs addressed energy and green transition, including solar power development and carbon capture and storage; industry and manufacturing, specifically steel and batteries; digital and artificial intelligence sectors; property and infrastructure; and environmentally friendly transportation.
Among the specific agreements confirmed by Indonesian officials, Danantara signed an MoU with Korea Eximbank, establishing a framework for financing cooperation. State electricity company PLN IP signed a joint study agreement with LXI for the potential development of new and renewable energy projects in Indonesia. PT Pertamina Hulu Energi and ExxonMobil signed an MoU on cross-border cooperation in carbon capture and storage. Sinarmas Land signed a cooperation agreement with Daewoo for the development of residential and commercial land in the Bumi Serpong Damai area. The Indonesian Chamber of Commerce and Industry, Kadin, signed a business cooperation agreement with the Korea Chamber of Commerce and Industry.
Korean industrial investment in Indonesia has a substantial existing footprint that the new agreements are intended to deepen. POSCO’s steel development commitments and Lotte Group’s interest in co-investment with Danantara were both cited by Rosan Roeslani, who stated that the combined value of Lotte Chemical and POSCO-related investment discussions stood at approximately US$6 billion. A separate battery supply chain strand reflects the trajectory of the existing Hyundai LG Indonesia Green Power facility in Karawang, where the first phase of EV battery production reached 10 gigawatt hours of capacity.
The strategic partnership designation formalised at the summit includes commitments on energy security, critical minerals, and defence-industrial cooperation, though no defence procurement contract was signed. South Korean President Lee Jae Myung, speaking at the Blue House summit, identified Indonesia’s role as a stable supplier of LNG and coal as a central concern, given Korean industry’s exposure to global energy supply disruption.
The Seoul agreements complement US$23.6 billion in investment commitments secured during Prabowo’s preceding state visit to Japan, which covered the Masela gas field, finance and financial inclusion, and downstream industry. Together, the two North Asian visits generated a combined declared investment commitment of approximately Rp574 trillion.